As a trusted partner of the Nursery & Garden Industry NSW & ACT (NGINA), Lederman Insurance has once again proven its exceptional expertise in overcoming industry challenges. In a recent case, the team successfully secured comprehensive coverage for a Queensland-based production nursery—an achievement many competitors had deemed too difficult.
The Challenge:
The nursery had been with the same insurance provider for 50 years but was unexpectedly informed that its coverage would not be renewed. The insurer cited several factors, including the nursery's increased business size, high-risk exposure, and perceived inadequacies in its risk management strategies. The nursery's desperate search for a solution led to multiple rejections from other brokers and insurers, with concerns primarily revolving around bushfire and cyclone risks - issues that insurers were hesitant to take on.
Finding the Right Solution:
Determined to find a resolution, the nursery reached out to Lederman Insurance through NGINA Insurance. Recognising the complexity of the situation, Lederman took on the challenge, advising the nursery to avoid working with multiple brokers, as this can sometimes lead insurers to view the case as a "shopping" exercise. Instead, Lederman was appointed as the exclusive broker, giving them a six-week window to secure coverage.
Assessing and Mitigating Risks
The risks were more extensive than just bushfire and cyclone exposure. The nursery's previous insurance declination raised concerns across the industry, compounded by risks associated with storm damage to poly tunnels, limited fire protection, and the storage of flammable and chemical materials. These factors required a specialised approach.
To mitigate these risks, Lederman swiftly engaged an independent risk assessor. Within two weeks, the assessor had completed a comprehensive evaluation, outlining key mitigation strategies. The nursery took immediate action, committing to the recommended improvements, which included enhancing fire protection systems and improving chemical storage practices.
Strategic Negotiations
With four weeks remaining on the clock, Lederman began targeting insurers more strategically. Instead of submitting to mass-market providers, they reached out to carefully selected insurers who could understand the complexities of the nursery’s needs.
Lederman approached fourteen insurers, with thirteen declining to provide coverage. However, one insurer—a Lloyd’s-backed facility—offered a quotation, though it came with notable limitations: exclusions for bushfire and cyclone coverage and a $100,000 excess on all claims. Unsatisfied with this, Lederman negotiated with the nursery’s existing insurer for a two-month extension, allowing time to pursue further options.
Securing Comprehensive Coverage
After persistent efforts, Lederman continued pursuing two remaining avenues. While one insurer withdrew following its own risk survey, the other remained committed to finding a solution. By the end of the six-week period, Lederman succeeded in securing comprehensive coverage that included bushfire, cyclone, storm damage, and income protection. The premium was lower than the previous year’s, and the excess levels were manageable.
A New Tailored Insurance Product for NGINA Members
As a direct result of this success, Lederman Insurance has now developed a tailored insurance product specifically for NGINA members. This new offering provides comprehensive coverage designed to address the unique needs of the nursery and garden industry, giving members peace of mind in the face of unpredictable risks.
This story underscores Lederman Insurance's unwavering commitment to delivering innovative and effective insurance solutions, even in the face of complex challenges. With a proven track record and a customer-first approach, Lederman continues to set the standard for excellence in the insurance industry.
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